Best Invesco ETFs to Consider
Invesco is known for QQQ (Nasdaq 100). Here are their best funds and the niches where Invesco leads the market.
Don't have time? Here's what you need to know:
- 1QQQ is the iconic growth ETF (Nasdaq 100, 0.20%) — QQQM offers the same for 0.15%
- 2RSP (equal-weight S&P 500) reduces mega-cap concentration at 0.20%
- 3PDBC is the only broad commodity ETF that issues a 1099 — avoid K-1 headaches
- 4For core positions, Vanguard and iShares beat Invesco on cost; Invesco wins in niche strategies
Invesco: The Niche Player With One Blockbuster
Invesco manages about $350 billion in ETF assets — much smaller than Vanguard, iShares, or SPDR. But they own the most iconic growth ETF: QQQ (Nasdaq 100, $200B+ in assets). They also specialize in equal-weight, factor-based, and commodity ETFs where the big three have less presence.
For most core positions, Vanguard and iShares are cheaper. Invesco earns a spot in your portfolio for specific strategies: QQQ for growth tilting, RSP for equal-weight S&P 500, and PDBC for tax-efficient commodity exposure.
Best Invesco ETFs
| ETF | Category | Expense Ratio | What Makes It Unique |
|---|---|---|---|
| QQQ | Nasdaq 100 | 0.20% | 100 largest non-financial Nasdaq stocks — the growth benchmark |
| QQQM | Nasdaq 100 (mini) | 0.15% | Same as QQQ but cheaper — better for buy-and-hold |
| RSP | S&P 500 Equal Weight | 0.20% | Every S&P 500 stock gets 0.2% weight — reduces mega-cap concentration |
| PDBC | Broad Commodities | 0.59% | Only broad commodity ETF that issues a 1099 instead of K-1 |
| BKLN | Senior Loans | 0.65% | Floating-rate loans that benefit from rising rates |
QQQ vs QQQM: The Same Fund, Different Price
QQQM holds the same Nasdaq 100 stocks as QQQ but charges 0.15% instead of 0.20%. For buy-and-hold investors, QQQM saves 0.05% per year — about $50 per $100,000 annually. QQQ's advantage is higher liquidity and a deeper options market. If you do not trade options, QQQM is the better buy.
RSP (equal-weight S&P 500) is an interesting alternative to VOO. Instead of weighting by market cap (Apple at 7%), every stock gets equal weight (0.2%). This reduces concentration in mega-caps and gives more exposure to smaller S&P 500 companies. RSP has outperformed VOO in some periods and underperformed in others — it is a bet on breadth over concentration.
Tip: If you want Nasdaq 100 growth exposure at the lowest cost, compare QQQM (0.15%) to VUG (0.04%). VUG is not identical but provides similar growth-stock exposure at a fraction of the price.
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Frequently Asked Questions
Is QQQ a good core holding?
For a growth tilt, yes — but not as your only holding. QQQ is 60% tech and excludes the financial sector entirely. It outperforms in tech bull markets and underperforms during tech crashes. Use it as a 10-20% satellite, not a 100% core.
Should I use RSP instead of VOO?
RSP is a bet that the average S&P 500 company will outperform the mega-caps. In 2022, RSP beat VOO because mega-cap tech fell harder. In 2023, VOO beat RSP because mega-caps rallied. Neither is consistently better. If you are concerned about mega-cap concentration, RSP is an interesting alternative at 0.20%.
What is the difference between QQQ and VOO?
VOO holds the S&P 500 (500 stocks, all sectors). QQQ holds the Nasdaq 100 (100 stocks, no financials, heavy tech). VOO is more diversified and cheaper. QQQ is more concentrated in growth/tech. Over the past 15 years, QQQ has outperformed, but it fell 83% during the 2000-2002 dot-com crash while the S&P 500 fell 49%.
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Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.